KNOW YOUR RIGHTS: A car dealer’s affirmative duty to disclose in an “as-is” sale to a consumer in Ohio

 The Ohio Advertisement and Sale of Motor Vehicles Rule and the Consumer Act require a car dealer to affirmatively disclose the following to a consumer before selling the consumer a motor vehicle:

1. Prior damage to a new vehicle that the dealer knows about, where the retail cost of repair exceeds or exceeded 6% of the vehicle's MSRP. OAC 109:4-3-16(B)(14);
2. The fact that a motor vehicle has previously been titled as a salvage vehicle when the car dealer knows about it. OAC 109:4-3-16(B)(29);
3. Obvious defects in a motor vehicle at the time of sale whether or not the car dealer knows about them. Muench v. Eagle Savings Assn. & Hassan Motors, Inc. (C.P. Hamilton, 3/30/87) Case No. A 850744, Filed as PIF #861 on 5/5/87.

What kinds of damage must be disclosed?  Any damage to a new motor vehicle, excluding damage to glass, tires and bumpers replaced by identical manufacturer's original equipment. Or, damage to a used motor vehicle which caused the vehicle to be titled as a salvage vehicle, or damage to a vehicle which is substantial and obvious.  

What if the damage occurred before the dealer came into possession of the vehicle? This does not change the rules at all. The Ohio Advertisement and Sale of Motor Vehicles Rule and the Consumer Act do not distinguish between damage that occurred before or during the dealership's possession of the vehicle.

How must the damage be disclosed?  There is no requirement that the disclosures be made by the car dealer in writing. So, they can either be in writing or orally.

What if I purchased the motor vehicle primarily for business use?  If the primary purpose of your purpose was not personal use, then neither the Ohio Advertisement and Sale of Motor Vehicles Rule nor the Consumer Act apply to you. Therefore, the car dealer would not be required to disclose any of this information to you.  However, you may still have claims under a common law fraud standard, or under the Deceptive Trade Practices Act.

Has on Ohio car dealer failed to disclose significant damage or defects in a vehicle that you purchased from them for consumer use? Contact the dealer and see if they will take the vehicle back and give you your money back. If not, then you can contact the Ohio Attorney General's Consumer Protection Office, 30 E. Broad St., 14th floor, Columbus, Ohio 43215-3428, 1-877-244-6446. Or, you may want to contact a private attorney who specializes in Car Sales Fraud in Ohio.  Feel free to call Burdge Law Office on our Toll Free Hotline, 1.888.331.6422, to see if we can help you out of your "lemon" vehicle.

Beth Wells

www.BurdgeLaw.com

www.OhioLemonLaw.com

www.KentuckyLemonLaw.com

Helping Consumers Get Rid of Lemons, 13 Years Running

Buying a Used Car - STEP 11

Step 11 - Enjoy!

You have put a lot of hard work into making sure that your used car is safe and reliable, that your used car has a clean history, that you got the best price possible for your used car, and that you got the best financing for the deal-- so enjoy it.  You deserve it! 

Chances are, you won't need any legal help with your vehicle, because you did your homework.  However, if you still end up with a problem vehicle that had hidden damage, or a sorted past, then contact a consumer law attorney in your state to see if they can help you out of your jam. 

For a list of consumer law attorneys by state, click here.

Beth Wells

www.BurdgeLaw.com

www.CarSalesFraud.com

Helping Consumers Get Rid of Lemons, 9 Years Running

Buying a Used Car - STEP 10

Step 10 - Avoid Jury Waivers and Arbitration Clauses

Many car dealers put put arbitration clauses, jury waivers, and class action waivers in their form sales contract or in a separate form document that is included in your sales paperwork. Don't sign away your legal rights!

What is an arbitration clause and why shouldn't you sign one?  By signing an arbitration clause, you are agreeing with the car dealer that if you have problems with your vehicle, you will not file a lawsuit in Court, but you will instead file your claims with a private arbitration company.  This means that instead of having your case decided by a jury in a courtroom, your case will be decided in a conference room by an arbitrator paid for by the business.  In fact, many arbitration clauses actually require you to pay the arbitration fees and sometimes the attorney fees of the dealership if you lose.  Worst yet, the arbitrator is not required to apply the rules of evidence, or Ohio law, and the arbitrator's decision will likely be enforced in most cases whether or not the arbitrator actually followed the law.  In the end, the arbitration process can actually take longer and cost you more money than if you had simply filed your claims in Court.  So, even if you win the arbitration and eventually get it enforced in Court, you are likely to have a long, hard fight to get from point A to point B.  This means more time with a defective vehicle. 

What is a jury waiver and why shouldn't you sign one?  By signing a jury waiver, you are agreeing with the car dealer that if you have problems with your vehicle, you can file a  lawsuit but that a judge and no a jury will decide your case.  While juries can be unpredictable, they are often your best bet in auto fraud cases involving concealed defects and / or frame damage, because they can relate to you and the situation that you were placed in by the car dealer.

 

What is a class action waiver and why shouldn't you sign one?  By signing a class action waiver, you are agreeing with the car dealer that if you have problems with your vehicle, you cannot file your case in Court or in an arbitration proceeding as a class action.  Often, car dealers violate the law over and over in the same way.  This means that, in some cases, if you have a problem with the dealer or the car you purchase, then you may be able to file a case as a representative of a class in a class action.  But, signing the class action waiver means you give up those rights.        

In the end, the best way to avoid an arbitration clause, jury waiver, or class action waiver is not to sign one.  Most car dealers will agree to cross these clauses out of the sales agreement or not include them in the sales documents if you press them.  They would rather sell you a car without these clauses that lose out on the sale.  
On the other hand, if you are about to purchase a used vehicle, then beware!  Pay attention to all of the documents that you sign, because you could be signing away your legal rights without even knowing it.  

Beth Wells

www.BurdgeLaw.com

www.CarSalesFraud.com

Helping Consumers Get Rid of Lemons, 9 Years Running

Buying A Used Car - STEP 5

Step 5 - Go to the Dealer and Inspect the Vehicle

Go to the dealer to see the vehicle or vehicles that you are interested in.  Don't call and make an appointment, but instead show up unannounced.  

Ask the dealer about the history of the vehicle.  If the dealer's name shows up in the repair history on the vehicle history report, then ask about the maintenance or repairs that were performed there.

Take the vehicle for a test drive.  Pay close attention to how the vehicle handles and any noises you hear.  If you are concerned about anything during the test drive, ask the salesman about it.

Thoroughly check out the vehicle during the light of day and never at night.  When examining the outside, look for body panels that don't match up, which can be a sign of body repairs.  Also, look at the engine compartment, tires, steering, suspension ride, and look for colored exhaust smoke.  In the engine, look for fluid leaks, low fluid levels or unusual colors.  Metal particles, tiny lumps, burnt odor or a frothy residue can mean engine damage.  Billowing white tailpipe smoke could mean engine repairs.  Blue smoke can mean the vehicle is burning oil and you may be in for some expensive repairs.  For tires, a worn spot in the middle of the tire often means an overinflated tire.  Lots of wear on a tire's outside edge can mean a lot of hard driving and fast cornering.  Uneven cupping tire wear can mean suspension or brake problems.

Inside, make sure all the warning lights work (they should light up when you start the car and go out once the car is running) and make sure the warning lights don't stay on. Check the carpeting everywhere for mildew which can mean water leaks or a flood car.

Beth Wells

www.BurdgeLaw.com

www.CarSalesFraud.com

Helping Consumers Get Rid of Lemons, 9 Years Running

Car Shoppers Decisions Increasingly Driven by Social Media

Have you turned to your Facebook friends for comments before buying a car or deciding what dealership to go to?  If so, two recent studies suggest that you are not alone.  And, if these studies are on the mark, then the car buying and selling process may be in the middle of a significant evolution.

 

The first study, conducted by Digital Air Strike, a leading automotive social media and digital marketing service, surveyed more than 2000 car buyers and 650 automotive dealerships.  The study found that consumers nationwide are increasingly using online review sites before determining where to purchase a car.  In fact, 24% of consumers find online review sites the most helpful factor in deciding where to purchase a vehicle, while just 15% found car dealership websites most helpful.  The most popular review sites were Cars.com at 61%, Edmunds.com at 54% (most popular with older car shoppers), Google+ Local at 37% (dropping from a previous ranking in 2012 of 44%), Yelp at 14% (most popular with younger car buyers), and Yahoo at 11%.  The study found that there is a 43% probability that car shoppers will search for a local dealer on Facebook, and a 59% probability that a car shoppers will trust a review from a Facebook friend more than reviews on other sites. 

The second study, conducted by Ebay Motors, surveyed over 1,000 US adults.  The bottom line?  Generation Y, those born between 1980 and 2000, skip the showroom and turn to social media when purchasing a car.  In fact, a staggering 94% of Generation Y car shoppers turn to the internet when shopping for a new car or truck.  More than 33% use mobile devices, compared to 19% of older car shoppers.  And, only 13% prefer to visit dealerships when car shopping and 1 in 5 said that they would even be comfortable with going through the entire car buying process online.   

What does this mean for car dealerships?  If they want to keep or gain their market share, then they have no choice but to focus on online advertising, including Facebook.  Additionally, a car dealer's internet reputation may be just as important, if not more important, than word of mouth.  So, smart car dealers will likely begin focusing on online reputation management through firms like Digital Air Strike, if they have not already.      

 

Lesson learned for consumers?  Always consult online reviews of a local car dealership before purchasing a car.  This is especially true when purchasing a used car.  And, where you see negative reviews, be weary of similarly worded positive reviews that crop up around the same time-- there is nothing stopping a car dealership from posting "bogus" positive reviews in response to negative ones. 

So, before purchasing your new or used car or truck, take a look online at the reviews for your local car dealerships.  You may be surprised what you find.

Beth Wells

www.BurdgeLaw.com

Helping Consumers Get Rid of Lemons, 9 Years Running

Car Repair for the Female Consumer - Part 2: Making the Appointment

Step 1: Making the Appointment

Most dealers won’t accept your vehicle for repair if you just stop by the shop expecting to drop your vehicle off. Instead, you will need to call your local dealer beforehand in order to set up an appointment. When you call, have your diary with you so that you can best explain the symptoms that you are experiencing and the circumstances under which the defect or defects most often occur. And, if you have any photographs or videos, then mention those to the individual that you speak with at the dealer. 

Some manufacturers will not allow dealers to make repairs under warranty unless they can verify the defect, so providing a photograph or video to the mechanic will help to verify the defect for the mechanic and for that reason should be noted on the repair order.

Beth Wells

www.BurdgeLaw.com

Helping Consumers Get Rid of Lemons, 9 Years Running